Groupe Renault steps up China EV investment

Groupe Renault is set to become a major shareholder of Jiangling Motors Corporation Group (JMCG) to jointly promote EV development in China.

Following a first agreement on December 20, 2018, Groupe Renault will increase its share capital by about 128.5 million euros to become a major shareholder of JMCG subsidiary JMEV with a 50% stake.

Through this joint venture, Groupe Renault will be able to expand its influence in China’s EV market, while JMCG will be able to integrate and leverage more resources for future growth.

“China is a key market for Groupe Renault. This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities. As a pioneer and leader in the European EV market for 10 years, we will capitalise on our experience in EV R&D, production, sales and services,” Groupe Renault China region chairman and senior vice-president Francois Provost says.

JMCG chairman Qiu Tiangao says that by partnering with Groupe Renault, JMEV will be able to elevate its comprehensive competitiveness to a new level and penetrate into China’s electric vehicle market.

Set up in 2015, JMEV quickly obtained certification to manufacture battery electric passenger vehicles and made rapid breakthroughs in building up its research capability, supply chain, production capacity and market deployment, forming a full value-chain operation ecosystem in R&D, production, supply and sales for complete vehicle and critical components.

The company has become a prominent player in China’s EV market, aiming to build a full range of new vehicles to support the EVEASY rand.

In addition to the JMEV partnership, Groupe Reanual has three joint ventures in China, including Dongfeng Renault, Renault Brilliance and eGT New Energy Vehicle.

Read here about Groupe Renault’s global strategy in China.